Investing With a Purpose - What Is Your Why?
Why are you investing? It's OK if you have many different answers to this question, but there is a big problem if you have no answer at all.
Having clear reasons for investing is critical to investing successfully. It’s like going on a diet- is it to lose weight for an upcoming special occasion or to be healthy?
I’m often asked, “What are you investing in right now?” I counter this question by saying that WHAT I’m investing in isn’t as important as WHY I’m investing.
Or better yet, what is the goal of my investments - is it to provide financial security for myself, improve my current lifestyle, to pay for my grandson’s education? The basic idea is you need to have a reason or a purpose for why you are investing.
Think of some of the best decisions you’ve made in your life…when you bought your first home- was it to provide financial security and stability for your family?
What about paying for your child’s college education – was it to provide a better future for them without them having to carry student debt, and what about throwing your parent’s 50th wedding anniversary or 90th birthday party?
All of these occasions and decisions were given considerable thought based on your “WHY”. The same thought process should be applied to your investments.
With a purpose, you have a driving force and commitment behind your actions. And if it’s a driving force that you believe in, it will be much harder to get derailed from your course.
Why are you investing? It's OK if you have many different answers to this question, but there is a big problem if you have no answer at all.
Having clear reasons for investing is critical to investing successfully. It’s like going on a diet- is it to lose weight for an upcoming special occasion or to be healthy?
Is your “WHY” or your purpose for investing to build wealth for your retirement, create income to support a child’s education, create a charitable organization or something else?
The caveat here is that you need to understand your purpose, your “WHY”, your values and align them with your goals first because it's your values will get you moving in the right direction.
If you want to retire in 5-10 years, you have to figure out how much money and the rate of return you will need, then come up with an investing strategy based on your risk tolerance to meet that goal. The same holds true for any short term goal like providing income to support a child’s education
Some other questions you should be asking yourself:
How will these strategies help me achieve my goals?
Are these strategies designed to grow my total portfolio within my time frame?
How much risk am I really taking?
If you don’t know the answer to these questions - I would love to help you gain clarity and have the confidence in a strategy designed to help you be successful in achieving your goals.
PARIS Financial Planning specializes in providing financial planning solutions for women.
Contact us for more information about our education, management, and wealth building services.
Take the first step. Let's get acquainted. I listen and inquire about your goals, past and present experiences and family concerns. Tell me your story and I will design a plan based on your goals, your purpose, your values and what's important to you.
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PARIS Financial Planning provides successful women with conservative strategies to grow their wealth during accumulation/savings years to protect their wealth during their retirement years and tax-advantaged strategies to distribute their wealth during their life and upon their death.
"I am on a mission to revolutionize women's relationship with their money."
Contact me to learn how to master the feminine approach to building wealth